ASIC proposes custody and trading rules for Australian crypto platforms

Australia’s financial watchdog ASIC has proposed new custody, trading and financial standards for crypto platforms, setting out how firms would be licensed and supervised under a new framework. The rules are still proposals: ASIC opened a consultation on Oct. 15 and is seeking feedback until Nov. 27. The framework is due to start in April 2027.

ASIC’s consultation announcement says affected firms would need to apply for or vary an Australian financial services licence, provide customer disclosures and platform rules, and meet standards for holding assets, trading, settlement and financial resources.

Which crypto businesses would the proposals cover?

They cover digital asset platforms (DAPs) and tokenised custody platforms (TCPs), two categories created by Australia’s new digital asset framework. A DAP holds digital tokens for clients and provides related platform services. A TCP records assets held for clients as digital tokens. That distinction identifies what the platform does: one holds tokens; the other represents custody of underlying assets through tokens.

The framework also reaches existing financial services licensees, market participants, payment providers and other businesses that use or deal in digital assets. ASIC says its guidance would help firms work out which rules and authorisations apply to their activities.

What would a platform have to change?

First, the operator would identify whether its service falls under the DAP or TCP rules. It would then obtain or vary its licence and give customers disclosure documents and platform rules. The operator would also have to follow standards for safeguarding client assets, conducting transactions and settling them, and maintaining financial resources where required.

For trading, the proposals address transparency, customer orders, conflicts of interest and market manipulation, according to CoinDesk’s report on ASIC’s plan. The moving parts work together: licence conditions govern the operator, platform rules describe how it handles customer activity, and standards set requirements for assets and transactions.

When do the rules take effect?

The proposals implement the Corporations Amendment (Digital Assets Framework) Act 2026. ASIC says the new laws are scheduled to commence in April 2027. Under the Act’s transition provisions, firms have a six-month transition period from commencement to apply for an authorised licence; a firm that applies during that period can continue providing the service while ASIC decides its application.

ASIC has recorded more than 140 applications from businesses seeking authorisation for digital asset-related financial services. The consultation closes at 5pm AEDT on Nov. 27. ASIC says the draft instruments are preliminary and may change after consultation, so the proposed standards are not yet final requirements.

Sources

• consultation announcement — asic.gov.au
• CoinDesk’s report on ASIC’s plan — coindesk.com